All about SALT - Deducting State and Local Taxes on a Schedule A

Описание: Although it's been limited in recent years, the Schedule A deductions for state and local taxes (SALT) are an important deduction for many taxpayers. This video goes into detail about what state and local taxes can and cannot be deducted on a Schedule A.

2025 UPDATE:

Under the One Big Beautiful Bill Act, the maximum State and Local Tax that can be deducted on Schedule A has been increased to $40,000 per return ($20,000 if Married Filing Separately). In the last example, their entire SALT can be deducted.

To learn more about itemizing deductions, click here:    • Can I Itemize Deductions?  

To find out how sometimes your state tax refund could be taxable, click here:    • Why is my state tax refund taxable?  

Resources and Additional information:

IRS Publication 17: "Your Federal Income Tax": https://www.irs.gov/pub/irs-pdf/p17.pdf

IRS Schedule A: "Itemized Deductions": https://www.irs.gov/pub/irs-pdf/f1040...

Instructions for IRS Schedule A (contains the worksheet and tables for calculating a sales tax deduction): https://www.irs.gov/pub/irs-pdf/i1040...

Online Sales Tax Calculator at irs.gov: https://www.irs.gov/SalesTax

Information on the Georgia Title Ad Valorem Tax, and Annual Georgia EV user fee and be found at https://www.dor.georgia.gov

The Tax Geek on Twitter: @taxgeekusa

The Tax Geek on Reddit: www.reddit.com/r/askataxgeek

Image Credits:

Storyblocks.com
Pexels.com
Wikimedia Commons CC-SA (3.0-4.0)
NatGeoLover
Stilfehler
Farragutful
Mariordo
DrNegative

The images of "Celia," "William," "Willy Jr.," "Harry," and "Sally" were generated by thispersondoesnotexist.com and any resemblance between these images and any person(s), living or dead, is coincidental and not intended.

Intro Music: "Bluesy Vibes" - Doug Maxwell - YouTube Audio Library

Outro Music: "Modern Attempt" - Track Tribe via YouTube Audio Library

DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or investment advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or investment professional.

The information in this video is current as of date of publication, and is subject to changes.